Impact of transformational leadership on performance of employees
The research is on the topic that the impact of transformational leadership style on the performance of employees in the banking sector of Pakistan. The literature review on the dependant and independent variables and also on the mediating variables. Firstly the literature on the leadership style I see the work that how much work done on the leadership and the leadership styles. To know the styles firstly we know how of the leadership. Then I do the comparison of both leadership styles that all knew that what is the difference between them. The transformational leadership style is that style in which leader bring the change in the organization and develop the concept of the team work by motivate the employees. When the employees motivate then they make the team to work and it results to increase the employee performance in the organization. The mediating variables such as the motivation and the team building also explain by the research point of view. The flow indicates that the literature is on the leadership and then on the leadership styles and after that the difference between the transactional and transformation in the research of the researches to understand the full concept of the transformational leadership style. After that the motivational and leadership style are discussed and then the employee performance also discussed.
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Many researcher works on the leadership as the concept of leadership is derived from the military and the battle field situation. This is the concept where the military officers lead the army and in battle situation they influence their army with their behaviors to lead them. There are some roles which are defines of leadership such as The Exemplar, The Gatekeeper, The Visionary, The Truth-Teller, The Fixer, The Connector, The Enforcer, The Facilitator. These are some leadership roles which are leader played. (Dr. John H. Clippinger)
Leadership works when the leaders and the followers are agree to that what they want and from where they go with mutual understanding. To know the best of leadership we have to differentiate the leadership and the management. Management deals with the system of any organization and the leadership deals with the people of the organization. People needs the leadership where as the system needs the management. To become a leader you should be more committed with your workers. Leadership is that taking the people as the direction of example. Leadership is the personal side of the leaders. (James c Sarros)
There are many roles which are played by the leaders such as leaders particularly high raking managers, spend more time in the ceremonial activities or acting as a figure head. There are four specify behavior fit as the role of figurehead. a leader's play the role as the spokesperson as they deal with the outsider as the representative of the organization and inform the members to the activities, plan and the vision of the organization. The leaders are the negotiator as the sake of their team members. There are three specific negotiating activities which are played by the leader as the negotiator as an effective leaders always motivate and act as a coach for the team members, these role also have some activities as they should be know the activities of the team member, the achievements of the team members, they also give feedback for the poor performance of the team members, and give suggestions to the team that how they make good their performance, and change the mindset of the o team members they played the role of the team builder as they ensuring the team members that they knows the activities what they do and also appreciates them that they work best as the team in relate to individual as to motivate them, they always keep their team as unity in them and also they deals with the issues and the problem which are arising as the team work among the team members. As the team builder the leaders always the team player they do what the team members do and always concern what they want to do and how to do with their team members. They have the personal relationship with their team members as the team members have the relation with the other team members. They cooperate as the team leaders and also as the team player. They always show the loyalty with the team members as he/ she is the part of the team as the team member. The leader play a role as the technical problem solver. they help their team members as the technical advisor and also motivate them, the leaders also play the role of entrepreneur by giving the ideas of the innovation to their team members, the leaders are the strategic planner as they setting the vision and also direction for the team members and also for the organization. They help the team members for understanding the external; environment, and also help the team members to develop the organization policies. (Andrew J. Durbin, 5th edition)
There is some satisfactions ad the frustration also discussed in previous research. Some of the satisfaction of the leaders is as a feeling of power and prestige, A chance to helps other grow and development, High income they received, Respect an d status, They have the good opportunities for advancement, They have the opportunity to control the resources
The leaders are much satisfied with their character, they have the power to control the resources and all the team members respect them as leader as they have the satisfaction they also have some frustration and dissatisfaction with their status. The frustrations are discussed as they spend too much un compensate over time, They have too much headaches, They have no enough authority to carry out responsibilities, There is too much organizational politics, They always pursuit the conflicting goals
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Some traits which leaders have in them, There are two types of the traits one is the general personality trait and the other one is the task related trait. The term general personality trait is refers as the traits which are the leader have personality and these are the part of the leaders personality. The other is the task related trait in this those traits are discussed which is the apart of the, leaders while the working there are these some generally personality traits of the leaders are, Self confidence, Humility, Trustworthiness, Warmth, Extraversion, Assertiveness, Emotional stable, Enthusiastic, Sense of humor
The task related traits are those which are a part of the leader's traits when they work with their team members, Passion, Courage, Internal locus of control, Emotional intelligence, Flexibility, Adaptability.
There are many styles which are adopted by the leaders to lead their members and the subordinates as the situational leaders must adjust their leadership style to the situation as well as to the people being led. The primary focus of transformational leadership style is to make change happen in Our Self, Others, Groups, and Organizations. The transactional leaders who guide their followers to do a task. visionary leadership style focuses on how the leader defines the future for followers and moves them toward it. The charisma leadership style is that to influence the followers to behave in certain ways. And the style which I selected for the research is that transformational leadership style. This style in which a leader has some characteristics such as transformational leaders are the change agents they become change in the organization and they are the courage people and they also believe on the people what they have to do. These leaders have the vision and they are the whole life learners because they have an eye of forecasting the future in the dimension of change. (Sri Rama) .
Leadership is regarded as a critical factor in the implementation of the transformations in organizations. If leadership wants to have a positive impact both practitioners and researchers have argued that earlier leadership paradigms such as directive versus participative leadership, consideration versus initiating structure, autocratic versus democratic leadership, and task versus relations-oriented leadership should be broadened.
In the ideal organization, the top level - the leadership - should stay close to the ground."
. They have the complete picture of vision and they communicate it with their follows as the stories, build the trust and respect of their followers by doing the right thing rather than doing things right, they talk about the values and benefits, spend time teaching and coaching consider each individual employee's different needs, abilities and aspirations and celebrate each employee's achievements. (Dr. Olga Epitropaki)
Superior leadership performance i.e. transformational leadership, occurs when leaders broaden and elevate the interests of their employees, when they generate awareness of the purposes and mission of the group, and when they fold their employees to donââ‚¬â„¢t look their personal benefit.
They increase the organizational performance and also satisfy the employees. They generates higher commitment to the organization from their employees also increases employee trust in management and organizational citizenship behavior and enhances employee satisfaction with both their job and the leader reduces employee stress and increases security. It is a process to change the mind set of the individuals , connections motives, satisfying their needs, and valuing them. Idealized influence it states that the mangers are the role model for everyone and also they are the respected and trustworthy for the organization and helpful to make the right decision for the sake of the organization effectiveness. Inspirational motivation it states that it motivates their team and also share the vision of the organization because these are the visionary leaders and it motivates their team to achieve the goal of the organization for the growth and also gain the market stability and share also helpful to generate the profit and revenue for the organization. Intellectual Stimulation it states that the managers of the organization are the encouragers people and also creative. They have the unique and creative ideas to make the team at top and also they are the best problem solvers for the organization. They also promote the ideas of their group members and share it with all others. Individual consideration it describe that the managers are the mentor for their team and also the advisor for the team members. They focus on the both individual as well as the organizational benefits and associates the members with the goal of the organization also pay his full effort to reach the goal of the organization with the help of the team members. (John Hall).
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There are some qualities of the leaders have such they have the power to do the best work done itself and also for their followers for the sake of the organization, it is role model and have high standards and share the vision of all the members and listen their ideas, how to change the mind of employees according to the need (Shannon Johnson).
There are some strengths and the weakness of the transformational leaders as we describe the strengths; these leaders are the well known leaders among all others, they influence their members at all level and they have some values and standards as contrasts the weaknesses are they have the powers to lead the others as negative means, they emphasizes on the personal traits at high level. (Allen Wysocki).
A leader have to lead their employees in a positive way.. These leaders place value on the development of a clear vision and inspire followers to pursue the vision. In this way they provide a strong motivational force for change in followers. The logic behind transformational leadership has begun to scatter into the content and design of leadership development programs. These leaders start with the vision. Transformational Leader takes every opportunity. These leaders are always visible and they are motivators who motivates their employees and change their attitudes. Commitment with the leaders vision is the result of motivation.. The Transformational Leader seeks to change the mindset of the employee and also want to change the rules of the organization. There is the change in the personals, structure and the technology as well. When there is the employee are not happy with the change happens in the organization these leaders not think about him self but for the sake of the organization and the for the employees they have to change the mind of the employee to adopt the particular change. They highlights the benefits which gives that change to the employees to change their attitude to adopt hat change.. (Burns, J. M. (1978).)
Transformational leadership is about implementing new ideas; These individuals continually change themselves; They stay flexible and adaptable; and continually improve those around them. The issue in is that how the transformational leadership style takes place. Leaders often encounter that the need to transform organizations from the low performance to the acceptable performance and from the acceptable performance to the high performance. But there are some issues to take this so some characteristics which take place that how we transform the organizational and the employee performance. The transformational leaders always aware their team members that what they gain when they transform their selves. And they also motivate them by awareness of that how they successful after achieving the goal, the transformational leaders helps team members to look the picture that what happens if they think only for the organization and not for the self interest only , Helping people search for the self- fulfillment-the transformational leader helps the people to search that if they work on time then there is much chances to avail the higher opportunities. Helping people to understand the need for change -- the transformational leaders help the people and the team member by his leading ability that there is the time for change in the organization and also for the team members. Investing managers with a sense of urgency-- the transformational leaders create the change for the manager and they always avail the opportunities.(Andrew J. Durbin , 5th edition)
There are some types of transformational leaders are intellectuals, reformers, revolutionaries, charismatic. The leaders have the right to sacrifice himself for the sake of the employees and the organization. These leaders motivate the employees to change the organization and the society as well. this leaders seems as a hero. (2004 - 2007 Money-Zine.com).
Transformational leadership can successfully change the present status within an organization by evolving transformational behaviors in the change processes. These behaviors can be achieved by providing a vision that is attractive to subordinate in order to motivate them. Transformational leadership is the ideal way of leading research groups and improving their performance. Re-examine critical assumptions to question whether they are appropriate, seek differing point of view when solving and defining new tactics to complete the work, do convert impossible into possible one, to think about the creative ideas( Heilbronn,2004).
Transformational leaders as those who aware their team members that this the goal and how to achieve them by aware them the strategies and policies, motivate their team members that the work only for the organizational not for the monetary reward only and realize them that always work with team and help their team members if this work is not related to you or related it to you directly or indirectly. (Reza Gharoie Ahangar and *Ali Alijani Rooshan)
Transformational leadership can he learned and it can-and should-be the subject of management training and development. Research has shown that leaders at all levels can he trained to him charismatic.
Transactional leadership is the leadership in which the leaders reward the employees what they do for it. They motivate the employees and the employees know that in exchange of their actions they get the reward of it. The reward is distributed by the leaders as the performance of the action and that they settled in their contracts. In transactional leadership the employee and the leaders both are in the process of give and take as the physical reward. In contrast the transformational leadership the leaders motivate the employees and also motivate them to do something not for physical reward. They always motivate the employees for the good performance and for the organizational effectiveness. These leaders need the higher level of performance always and build a team. They fulfill the need of the lower level of the followers by encourage them and also motivate them. These leaders have the vision which they share with their members. They are the change agents and also bring the change in the organization to share the vision with members. They always take steps with the sharing of their members. The members of those leaders are always motivating only for the fulfillment the goal of the organization not for the personal gain. These leaders always touch with micro level of the organization and bring change in the macro level of the organization as they are the change agents. These leaders are the good dealers not the bad dealers for their members. Some times the transformational leadership uses them techniques of the transactional leadership but this is not durable for the organization. The reward is on the favor of organization for the short time but the motivation is the permanent key for the organization to work with them. The members who motivated and have favor for the organizational change, they only inspired by the transformation leadership style. It may be said that when the leader have no ability to offer the reward then he may motivate only their employees. So, the transformation leadership style has the long capacity to kept buy the leaders as the transactional leadership style. (Loen J. Schimmoller, 2006).
Transactional and the transformational leadership are the different concepts by the early researcher . in the transactional leadership the leaders have to benefited the employees by the monetary term and pursue their followers by the reward of the work which they lead to do the work. And in the transformational leadership style the leaders have to change the mind the followers and also motivate them that to do that work for the sake of the employee himself and for the organization and for the society. The motivation is the factor where the employee motivate and then make a team to increase their performance in the organization.. (Ronit Kark, 2003).
Transformational leadership occurs when the leader and the follower elevates one another to higher levels of motivation. Individuals form a group for getting reward or avoiding punishment. They are more attracted to the group if they expect more reward or support from grouping together. Some members will try to change the behavior of others if there are hindrances to rewards or avoidance of punishments. Transformational leaders advise followers to go beyond their self-interests and be concerned about their organization. They help followers to realize and develop their potential. These leaders identify the needs of their followers and then consider those needs to enhance development. They are the role model and encourage their leaders to ask the questions about the work. They want their followers to regard challenges as opportunities and they cooperate with them to elevate expectations, needs, abilities, and moral character. (Dereli. Mahce, 2003)
they have to motivate their followers to do work with team members. In many organizations, both transactional and transformational leadership is needed. The transactional leaders ensure that routine work is done reliably, while the transformational leaders look after initiatives that add value.
Firstly, the people makes the groups for the basis to accommodate each other. The groups are formed for the welfare and the protection of others members but when the groups seem to be have successful then it formed as teams. Managers deals the groups because they have not enough knowledge to accommodate the members to achieve the particular goal. The leaders manage the teams they have the knowledge to accommodate these groups are working with their members as individual but the team works as mutual purpose. Groups members have the personal goals but the team members have the combine goal i.e. organizational goal. Group members are not share anything with others but team members are share their vision to every one. Group members have no trust to others but the team members start their work as the trustworthy for other. Group members are not necessarily participated in decision making but the team members always participated in decision making. Group centered are the managers and the team centered are the leaders. (Robbert D Madduxe and Barb Wingfeild, fourth edition).
There are some qualities of the effective team members these are the effective team members see them selves capable as the leader, the team members should be committed with their work and follower the leader to achieve the goal, effective team members build their competence and focus their efforts to maximize the results and the less effective needs training. Effective team members established them selves as independent , critical thinker and fight for that what they believe that it is right. There are some issues to build a team i.e. this term refers to the attractive among the group members. There are two types of the cohesiveness one, social and other task. Social cohesiveness is that to build a social attractive between the members it may be practiced of fun and play games the members. And the other one is the task cohesiveness it refers that members are formally awareness with the task they have to do it may practiced with the activities doing with the employees and the members to familiar with the work.communicatio0n is very important issue to build a team. At every step the members have to communicate with each other because in team work all have mutually worked. The practice of the communication is that they have established the environment in which all members have the chance to communicate with others and the process of feedback also involve in it. there are some rules and norms which are maintain for every team members and it always restricted to fulfill these rules. It may be cooperation of others while working team member goal is also the goal of the organization. The commitment to do with their leader is also the motivate the leader and also the team members . this term refers that how much one interdependent on other. It is the main issue in the teambuilding because every one has to survive itself than others and gain more but in team there is no concept of personal benefit but it is the organizational goal. In the team there is the concept of sink and swim. Means you have to gain profit and loss as well mutually basis.( Darwyn Linder)
There are some phases to build a comprehension team i.e. Forming is the initial phase in which the members familiar to other members. And they know that how they work and whom they work. Storming is the phase where the members know that at what place he has. And also they have some confidence at that stage to argue or share his vision and the recommendation to the leaders. Norming is the stage where the members share their experiences and share that how they make decision to solve any problem and conflict. Performing in this phase when they all familiar to each other then they have practiced to achieve the goal. Dissolving and reorienting in this step the team who performing their work and project then it may have dissolve but it may be reoriented for the next project or work. (Andrew J. Durbin, 5th edition)
There are some responsibilities of the team leaders as described as: assign the clear task to each member, monitor the team, motivate team members, decrease the conflicts, check the performance of all the employees, give guidance to them if they needed and help them to remove any difficulties. There are also some causes to failure of the teams as; there are some external barriers are exist such as the work load , lack of resources and some internal barriers such as the failure to make the decision making, not appropriate leadership applied and the last issue of barrier is that the groupthink is arises when there is inner interaction of the team members exists and to control this the leader keep an eye on each member and also keep the size of team is small to monitor each member easily. (Geneva, 2007)
There are some characteristics of the team members are they have the common vision, there is the clear objective of all the team members, there is no restriction to share their idea, all members have the goal to accomplished the organization goal, they take participate in decision making, all members are the motivated, there is trust between all members, They all supportive of others, they are all energetic. Previous research has established a direct relation between transformational leadership and team. There is a concept in the research that the team will be formed with the unity and some times there is performance a conflict arises between the teams at that the transformational leadership style works and they change the mind set of the teams and their members. Team when established and the conflict arises between the teams then the leaders guide the members to share the vision of the organization and build a strong team by motivating them and also involve them in decision making process. They dissolve the issues between the team members by adapt their problems and then try to lead them in their own way because it is the characteristic of the transformational leader to be an adaptable personality. These leaders build a team for the immediate outcome of the vision and the change they bring in the organization.. The individually considerate leader is responsible for constructing a face-to-face relationship with each team member, listening to concerns and addressing individual needs. These leaders are maintaining the relationship between the team to build a strong team and also noticed on their problem and try to fulfill their needs. Transformational leaders are leaders which maintain the team and also train them where they are weak at their work. These leaders are always wanted that their team will be strong in any project. Transformational leadership training may be indicated for all members of a team. The team also believe on his leader that they effort on the development on the team and trained them also so, it is the exchange of the team to their leaders be with their leader and also motivated. Transformational leaders are likely to increase group performance in that they are involved in succeed over social be still among group members. (Leanne E. Atwa)
Team members of transformational leaders often feel trust and respect toward the leader and are motivated to do more than they are expected to do. In this way, transformational leaders change the beliefs and attitudes of team members and built a team so that they are willing to perform further than the minimum levels specified by the organization it also the result of the increase in the employee performance. It identifies six dimensions of transformational leadership: communicate a vision, providing a right representation, development the acceptance of group goals, setting high performance expectations, giving personal attention and treating individuals according to their needs, and thinking about old problems in new ways. With these dimension they build a team. Transformational leadership has to do with creating and building commitment for an interesting vision of the future for the unit, department, or organization with their team members. The Vision implies forward-looking drive and the need for achievement and also provides the way to their team members that how they work on the vision which the leader shared with the team members. Transformational leadership has to do with expecting a high level of achievement from team members, insisting on their best performance and change their mind and set the mind that they only focused on the organizational goal with the team effort not individually. Transformational leadership has to do with leading by example - leading by doing, not just telling. These leaders do what they have expected with their team and they also work with his team not only ordered them to do this or that but also they are member of their team and develop the concept of the team building. a leader is expected to take care of the needs of subordinates, even their personal and familial needs and they make an extra effort to make sure that they understand their team members needs and feelings. (Gretchen Spreitzer).
this term refers that how much one interdependent on other. It is the main issue in the teambuilding because every one has to survive itself than others and gain more but in team there is no concept of personal benefit but it is the organizational goal. In the team there is the concept of sink and swim. Means you have to gain profit and loss as well mutually basis. ( Darwyn Linder)
The leaders has some characteristics to maintain a team these are; they have integrity, they always sets clear goals for build a team, they clearly communicates a vision with the team, they sets a good example by working with team, they expects the best from the team, they encourages their team members, they support their team member by fulfill their needs, they recognizes good work and people and give the chance to them to work at good project, they provides motivating their members work, they helps people see beyond their self-interests and focus more on team interests and needs and inspires with their work to their team members. (Reza Gharoie Ahangar and Ali Alijani Rooshan)
There are some characteristics of the team members are they have the common vision, there is the clear objective of all the team members, there is no restriction to share their idea, all members have the goal to accomplished the organization goal, they take participate in decision making, all members are the motivated, there is trust between all members, they all supportive of others, they are all energetic. Some teams have the vision to achieve the good leaders. Some activities are done by the leaders it self and also do with their team members as they are competent to do the task. Team processes are not so much about the individual tasking but about how the team interacts and functions as it makes decisions, solves problems and resolves conflicts. The performance of the team member is the challenge for the leader as the leader change the viewpoint of the team members. (Mike Waddell)
The leaders make the team by maintain their motivation level. They increase the performance of the employees by motivate their team members. This is the result of enhancing the organizational effectiveness. The leaders achieve the goal and the transformational leaders reach at that vision which they set with the involvement of the team by motivating the team members. The relation of the team building and the motivation level is the positive in this sense if the members are motivate then they build a team and if they are not motivated to do work in the team then they are not building the team.
There are some factors that influence the team motivation. These factors are; this term refers to influence the team to for motivation is that there is a purpose among the team members and this purpose is motivated the team members. The purpose of the work between the team members should be the clear and align to each member. If that purpose is not clear then all team members are blind that what the purpose is of to make their team. And if the purpose clears then the team members are motivated to do what is the purpose of the work. Purpose always brings the factor of the motivation among the team members and these motivation factors become the strong team, responsibilities are the reason to become the team members a motivate individual. There are some responsibilities are the tricky and also difficult to enhance the motivation level among the team members. Some responsibilities are the reason of the de motivation as when the responsibilities are too much high and compliable. There is also the responsibility of the team members to be motivated over the long period of time. The performance of the team member is also good and better when they are motivated, this term refers that the team motivation is the challenge for the leader. It is too difficult to maintain the motivation level among the team members. If the project is difficult it is challenge for the leader to enhance the motivation level of the team members and also maintain it among them. The motivation is also the challenge for the team members and the leaders. The challenge itself also the motivator who individual face the challenge it means he is the motivator, A good leader motivate the employee in the short term but the best leader motivate the employee for the long time. (Peter Grazier)
Continuously communicate and act upon the organization's mission, values, and goals, your employees will be motivated to live the mission and maintain a high standard of behavior and productivity. This communication must start at the top and be communicated and acted upon at every level at every opportunity.
The psychological meaning of motivation -- It is the internal mental state of a person which relates to the initiation, direction, persistence, intensity, and termination of behavior. The managerial meaning of motivation - It is the activity of managers to induce others to produce results desired by the organization or, perhaps, by the manager. (Dr. T. J. Kamalanabhan, module 5)
Motivators are those who have a desire to do some. There are some characteristics of motivated people are; they like difficult, but potentially achievable, goals, they like to take calculated risks, they are more concerned with personal achievement than with rewards for success, They have a strong need for concrete job-relevant feedback.
They want to know how well they are doing. There are also some factors that are influence the motivator; they are the achiever who achieve any task and any goal, they have the energy to growth in any direction which is the positive results, they do their work with confident, they know that at what level they stand and see himself at what level, they are enough responsible, there is the good relation with their peers and the subordinates as they know that they work in the team. (Giovanni Asproni, 2004)
There are two concepts of the motivation one is the intrinsic motivation and the second one is the extrinsic motivation. Intrinsic motivation is the term in which the individual itself motivate by his own work not any other external factor. An intrinsic motivation is derived by the inner feelings of the individual to do some thing for himself and for the organization. As contrast the extrinsic motivation seems comes from outside of the individual. Common extrinsic motivations are rewards like money and grades coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. Sometimes just working for salary is not enough for employees to stay at an organization. There are many methods to help keep employees motivated. Some traditional ways of motivating workers are placing them in competition with each other. In research there are some rules are discussed to motivate an individual; set a major goal, but follow a path, finish what you start, socialize with others of similar interest, learn how to learn,, increase knowledge of subjects that inspires, take risk. Seeing your self making progress is one way to be motivated. But if that's not there, it becomes a vicious circle, because when you're not making progress, you don't feel motivated.
Team members of transformational leaders feel trust, admiration, loyalty, and respect toward leaders and are motivated to perform extra-role behaviors. Leaders high in transformational behaviors achieve maximum performance from followers because they are able to inspire team members to raise their criteria for success and develop innovative problem solving skills.. People are motivated to perform certain kinds of work or to engage in certain types of behavior, and then intrinsic process motivation is occurring. For this source of motivation, the work itself acts as the incentive because workers enjoy what they are doing. People influenced by an intrinsic/external process are motivated by prestige, rewards and status, perhaps more suitable to transformational leadership. (Barbuto, John E., Jr). Motivation is physical action, Motivation is driven by the emotion, Leadership motivation is not to do for others, but to do with themselves. Motivation is the factors in which you inner pursue others. There is no negatively emphasize other to do that work. These leaders are the leaders who mentally change the min d set of the follower to do that work. The leaders are the creator to and have the skills to crate some thing from the minds of the others. The leaders motivate the employees by the emotions of the followers that if the do that work they have the chance to improve their performance and also have the chances to have promotion. All individual have the different personality and have the different mind in this leadership style the leader have the ability to influence other and motivate them to do that work which is beneficial for the organization and also for the individual. Transformational leaders motivates their team and also share the vision of the organization because these are the visionary leaders and it motivates their team to achieve the goal of the organization for the growth and also gain the market stability and share also helpful to generate the profit and revenue for the organization. (John Hall).
Transformational leadership style is the style in which the leaders change the behaviors of the follower and lead them to the positive way. And this leader have the quality to become the employee the best employee of the organization. They influence the followers, motivate them and considered that the employee is the best asset of the company
The motivation factor is highly related with performance. Different theories of motivation are put forward so far and each offers a different explanation of the concept. But one common argument to these theories is that motivation affects performance. Performance is the result of motivation while organizational structures are a major reason of the motivation. Where as many researches suggests Performance would increase with the expectation that high effort will lead to desired performance and that such performance will be rewarded, greater emotional involvement by employees who believed that their contribution was highly regarded. transformational leadership have some dimensions: "building vision and establishing goals; providing intellectual stimulation; offering individualized support; modeling culture; and developing structures to promote participation in decisions.
The employee performance means that how the employee works at his work place and how they perform their work. The accomplishment of the given task and then evaluated it according to the standards se is the performance of the employee and also complete any contract which given.
These leader have the ability to align the individual task with the organization task and then increase the organization performance automatically increase the employee performance. It links individual employee objectives with the organization's work. They motivate the employee that these are the goals of the organization and the you have to work with the team members because the align task is accordingly plan that the employees work with the team then they have to achieve the organizational goals . these leaders also have the check and balance of the work which they lead to their followers.
The performance of the employee is the end result of the work which the employees done. There are standards set for the employee to evaluate the employee that he works on that standard or not. For the evaluation of the employee performance there are many method. The method is that to evaluate the employee on the basis of the performance is the performance appraisal form. The performance appraisal form is the form which is used to evaluate the performance of the employee on the basis of standards and these standards are achieved or set by the job description of the employee. Appraisal form is the process to check the performance of the employees on the current performance standard at those standards which are set by the organization.
The performance is measured on the two levels such as micro and macro level. At micro level the performance is checked only of the employees and organization maintains the standards to evaluate the employee. The second one is the macro level at this level the performance is checked on the organization basis and also for the individual basis. The performance of the employee is evaluate for the purpose of the increment on the individual salary or not and at the organization level it checked for the purpose whether the employee retain or nit at his performance.
Performance of the employees based on the organization following planning, monitoring, developing, rating and rewarding. The organization measures the performance of the employees told the employees that how the employees work in an organization on continuously basis feed back to employees about his her performance helps the employees to improve his/ her performance. On the basis of the peers feedback it clear that how much standards that employee meet or not. When the one employee work best and the others feedback is not good for his favor then the employee de motivated and the turnover rate will be increased. Performance improvement decrease turnover rate and it motivate the employees by increasing his work ability and he do best for itself.
There is no proper system in all over the Pakistan of the performance management. It has some default in the system. The leaders should lead the employees to do the best performance and how they do the best performance. It is the work of the leader to lead the employee and told them that how they increase there performance and also what are the gap in their performance in contrast to the there team members.
There are some key steps that high the performance of the team such as describe the environment to the team member that at which the team members work and if they know the environment then they give high performance, the leaders should define the goals to the team members with this they have the know how of the goal which they achieve and they will be performed well, if the team members knows the work and also the role which they play to make the project then they are performed well, team trust is the very important factor of to enhance the employee performance and also to build the team. (javitich)
Team development, improved synergy and insight objectives are also help to improve the performance of the team members.
The fundamental process of transformational leadership is to make conscious what lies unconscious among followers. It operates at need and value levels higher than those of the potential follower. In its most effective form it appeals to the higher, more general and comprehensive values that express more fundamental and enduring needs of the follower.
The adoption of the transformational leadership style is the result or help to make the team building and the motivation level increase. When the motivation level increases in the team members then they have to increase their performance.
The summary is that this literature review spot the topic that transformational leadership style has the impact on the employee performance. Because when the leader in the organization adopts this style then he has the power to bring the change and motivate the employees to work in the team and change the mind set of the employees also that when you work in the teams than you have to increase the performance and the work is done good.
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